Technology Startups Surpass 180,000 by Q3... Recovery in Face-to-Face Industry Startups

Ministry of SMEs and Startups Announces 'Startup Business Trends'
Tech Startups Surpass 180,000 for the First Time Ever
Face-to-Face Sector 'Personal Services' Increases by 5.2%

[Image source=Yonhap News]

[Asia Economy Reporter Junhyung Lee] As of January to September this year, technology-based startups, including manufacturing and knowledge-based service industries, have surpassed 180,000 for the first time ever. During the same period, startups excluding real estate increased by 6.1% year-on-year to 830,929.

According to the '2021 January-September Startup Trends' announced by the Ministry of SMEs and Startups on the 24th, technology-based startups from January to September this year reached 180,607, an increase of 3.8% (6,679) compared to the same period last year (173,928). The total number of startups was 1,068,998, down 7.3% (83,729) from the same period last year. Excluding real estate, where registration of housing rental businesses under 20 million KRW per year was mandated last year, startups increased by 6.1% (47,476).

Startup Company Trends.
Photo by Ministry of SMEs and Startups

By industry, retail and wholesale startups increased by 12.3% year-on-year, supported by the activation of online shopping. During the same period, real estate startups decreased by 35.5% due to the base effect from a surge in business registrations last year.

Technology startups exceeded 180,000 for the first time on a cumulative basis through the third quarter. This was due to a significant increase in startups centered on information and communication (26.1%) and professional scientific technology industries (20.8%), driven by the acceleration of online and non-face-to-face trends. However, among technology startups, business support services and manufacturing decreased by 26% and 4.6%, respectively, compared to the same period last year.

Among face-to-face industries, accommodation and food service startups decreased by 4% year-on-year, a smaller decline than last year's 8.9%. Personal service startups increased by 5.2%, unlike last year's 5.6% decrease due to the impact of COVID-19. The Ministry of SMEs and Startups explained that a recovery trend has begun in some face-to-face industries such as personal services.

Number of Startups and Growth Rate by Age Group.
[Photo by Ministry of SMEs and Startups]

By age group, startups by youth aged 39 and under were the highest among all age groups at 382,805. Youth technology startups also accounted for the largest share in technology startups at 67,364. Startups by those aged 60 and over were the lowest at 150,078 but increased by 23.4% compared to the same period last year. Technology startups by those in their 40s and 50s increased by 6.7% and 6.5%, respectively, compared to the same period last year, indicating that technology startups among those aged 40 and over are becoming more active.

Both corporate and individual startups showed a declining trend. Corporate startups were 94,220, down 1.7% (1,638) from the same period last year. Individual startups were 974,778, down 7.8% (82,091) from the same period last year. Excluding real estate, corporate startups decreased by 0.7% (585), while individual startups increased by 6.8% (48,061). In technology startups, corporate startups decreased by 1.2% (410), while individual startups increased by 5.1% (7,089).

This content was produced with the assistance of AI translation services.